The only way is down when it comes to Totton lease terms. Totton leaseholds that have a remaining term less than than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service will provide you increased control over the value of your Totton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a high value apartment in Totton being sold with a lease of a few days over 61 years left. Reuben on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Autumn we were approach by Ms Georgia Patel , who was assigned a lease of a garden flat in Totton in March 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Totton with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed on 12 July 2089. Given that there were 63 years remaining we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.
In 2012 we were approached by Mr Mason Martínez who, having owned a first floor flat in Totton in February 2005. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative flats in Totton with a long lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed in 2100. Considering the 74 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.